Considering Roth conversion? Some pitfalls to avoid. - March 5, 2010
The New York Times today has a helpful article on pitfalls to avoid in Roth conversion — some of which can lead to as much as a 6% tax hit. Worth reading if you’re thinking of converting.
Also worth noting: if you’re thinking of converting a conventional IRA to a Roth, why not roll it over into a self-directed account at the same time? This will permit you to take full advantage of the Roth’s after-tax investing potential, investing in opportunities that can give you a higher rate of return and diversification beyond the stock market. (Including the trust deed investments we offer, plus other non-traditional but high-potential investments like private equity and real estate.)